India Orders Takedown of 15 Crypto Platforms Over AML Breaches

Highlights:

• India has issued AML notices to 15 crypto platforms for failing to meet local compliance rules.
• The FIU is also seeking action against the apps and URLs used by the platforms.
• The affected crypto platforms must follow India’s AML rules when serving local customers.

India’s Financial Intelligence Unit issued notices to 15 offshore crypto firms on Tuesday for failing to meet anti-money laundering rules. The FIU issued the notices under Section 13 of the Prevention of Money Laundering Act. The authority also sought action against the apps and URLs that the platforms use to serve Indian customers.

👉 Financial Intelligence Unit- India (FIU-IND) issues notices for non-compliance to 15 Virtual Digital Assets Service providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PML) Act, 2002

Read more ➡️ https://t.co/WdEkDY8z3i pic.twitter.com/wajVr9GnIC

— Ministry of Finance (@FinMinIndia) September 9, 2026

The FIU named Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken and WOO X among the affected firms. The list also includes Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian. The authority said the firms served Indian users without meeting the country’s anti-money laundering requirements.

India brought virtual digital asset service providers under its anti-money laundering framework in March 2023. Since then, platforms serving Indian customers must register with the FIU as reporting entities. The rules also cover offshore firms that serve Indian customers without maintaining an office or legal entity in India.

The framework covers crypto-to-fiat exchanges, digital asset transfers, custody and other virtual asset services. Registered platforms must verify customers and maintain transaction records under the PMLA. They must also report suspicious transactions to Indian authorities.

Offshore Stablecoin Use Raises New Concerns

FIU-IND also asked at least three major exchanges for records of OTC crypto transactions above $10,000. The exchanges had to preserve relevant records dating from January. The authority also requested beneficial ownership details, intermediary information, and data about entities behind the transactions.

The FIU has also strengthened KYC rules for crypto service providers serving Indian customers. The updated rules require stronger identity checks and more detailed transaction records. Crypto platforms must also report suspicious transactions under the PMLA framework.

🇮🇳INDIA ( FIU) INTRODUCES STRICTER KYC NORMS FOR NEW CRYPTO USERS.

-> Crypto platforms must now verify users using a live selfie.
-> Exchanges must collect user location, IP address, and account creation time.
-> User bank accounts must be verified using a small test… pic.twitter.com/NhZn8Qrevk

— Kashif Raza (@simplykashif) January 12, 2026

India has also expanded its international tax reporting rules to cover specified crypto assets. The updated rules also cover central bank digital currencies and certain digital money products. Financial institutions must identify relevant accounts and verify customers’ tax residency information.

India taxes crypto gains at 30% and applies a 1% tax deducted at source to qualifying VDA transactions. These tax rules operate alongside the registration and reporting requirements for crypto service providers.

India Tightens Rules for Crypto Service Platforms

India used a similar approach against major offshore exchanges in December 2023. The authority issued notices to Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex. Indian authorities later sought restrictions on several of those exchanges’ websites and mobile applications.

Some affected platforms later worked with Indian authorities to meet registration and compliance rules. KuCoin registered with the FIU after paying a penalty for failing to meet Indian requirements. Meanwhile, India fined Binance 188.2 million rupees in June 2024 for AML violations. Binance completed its FIU registration in August 2024 after months of discussions with Indian regulators. The exchange resumed its Indian operations after authorities restricted its access for seven months.

Bybit also paid a 92.7 million rupee penalty after Indian authorities cited its compliance failures. The exchange later secured FIU registration and became subject to India’s reporting requirements.